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Keyman

somarco

GA Medicare Expert
5000 Post Club
36,900
Atlanta
I have a client with a keyman life policy purchased 3 years ago before I became her agent. Actually, there are 2 policies in place.

Julie is the owner & beneficiary of a policy on Holly and Holly is the owner & beneficiary of a policy on Julie.

Holly has since retired and wants to take the policy with her.

Hancock is the carrier.

Hancock has told them the ownership of the policy cannot be reassigned, they will have to apply for new policies. Sounds like a crock to me, and I am certainly willing to write the new policies, albeit at a higher premium. Just trying to do them a favor and save them a few bucks.

Any idea why JHL will not let them change ownership? JHL has agreed to let them make a bene change, just not the ownership.
 
Any life settlement guy will tell you that there are ways around that. To the nest of my knowledge, after the policy has been in effect for two years, you can sell it or reasign it to whomever you want.
 
Hadn't thought about selling it, but that is not what they want to do. Just want to change ownership and JHL says no.
 
somarco said:
Hadn't thought about selling it, but that is not what they want to do. Just want to change ownership and JHL says no.

Bob,

Who is it that's saying the ownership can't be changed? Have you talked with JH? I have a change of ownership form and an absolute assignment form I'll email you. Don't know if it's for the particular policy type they have, but it's worth a try.
 
Hey Scott -

JHL didn't tell me. The client said that was what JHL told them. Didn't make sense to me then or now.

Got the forms you emailed.

thx
 
Sounds like a cross-purchase buy-sell. They (JHL) must be BSing someone. My understanding is, that unless owned by an irrevocable life insurance trust, ownership rights can be assigned by whatever agreement and method the OWNER of the policy deems acceptable. I'm not sure Hancock has a choice!
 
I think it's a perfect example of the Hancock trying to "call their bluff". Like most life companies...they hate to give it up. Kinda like the ole' 1035 exchange. It's like pulling teeth.
 
No ILIT in this case. Not even a buy-sell. Just simple Keyman (in this case, Keywoman) cover. Each individual is the beneficiary, not the company. When they told me what Hancock said, it didn't make sense to me either.
 
I did not mean that you should try to sell it, just that settlement people are familiar with the assignment laws, and they do it all the time.
 
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